Argentina's Dairy Industry Overview
As of 2023, Argentina stands as a pivotal player in the global dairy market. The country supports a substantial dairy cattle population of approximately 1.6 million, contributing to an impressive annual milk production of 10.5 billion liters. This positions Argentina as a significant contributor to the world's dairy supply.
Production and Processing
Argentina boasts a sophisticated dairy processing infrastructure capable of managing around 9 billion liters of milk annually. The nation excels in cheese production, yielding approximately 500,000 metric tons each year, along with 150,000 metric tons of milk powder and whey.
Key Enterprises and Dairy Farms
Prominent entities in Argentina's dairy sector include La Serenísima (Mastellone Hermanos S.A.), Saputo Inc., and Williner. Leading dairy farms such as Tambos La Unión and Estancia La Nueva play a vital role in national milk production.
Exports and Imports
Argentina exports about 3.5 billion liters of dairy products annually, including liquid milk, cheese, and milk powder. Exports are bolstered by growing demand from China, while imports from Germany have been halted due to concerns regarding Foot-and-Mouth disease.
Significant Market Events
The industry has encountered challenges, including board changes at Saputo Inc. and an anticipated 7% decline in milk output for 2024. However, exports are expected to rise by 50%, aided by the completion of the EU-Mercosur trade deal, which is set to enhance trade relations. Despite financial challenges, companies like Milkaut are investing in modernizing and expanding their plants.
Outlook and Trends
Despite challenges such as rising production costs and climate disruptions, the sector is poised for growth, with innovations like robotic dairy farming in Tacural, Santa Fe. Reports indicate a nearly 16% increase in milk production year-on-year as of March 2025, with a projected annual growth rate of 6%.
International Engagement and Future Prospects
Argentina's active involvement in the International Dairy Federation and strategic decisions regarding companies like SanCor and Vicentin highlight the industry's evolving landscape. Despite a strong peso impacting export competitiveness, Argentina remains a crucial global dairy supplier.
Challenges and Innovations
Financial crises pose significant challenges, with a leading dairy company in Santa Fe facing a debt of over 5.42 billion pesos. The role of cooperatives, advocated by CAPROLECOBA, emphasizes the need to remove export duties to boost income and investment. Meanwhile, organic dairy production is gaining traction, exemplified by an organic dairy in General Rodríguez supplying milk to Nestlé.
Cultural and Consumer Trends
Tandil celebrated its Banquete Típico cheese's recognition as the best in the semi-hard cheese category, while a new ice cream flavor, chocolate and almonds, gained popularity.
Regional Support
Tucumán has extended tax benefits for its dairy sector until 2035, strengthening local production. Despite inflation pressures and economic challenges, the industry is experiencing a resurgence, with a 10.9% increase in national dairy output in the first quarter of 2025, further consolidating with a 12% increase in the first half of the year.
Conclusion
Argentina's dairy industry is set to achieve record production levels in 2025, with projections suggesting an output between 11.4 and 11.5 billion liters. However, the sector faces a downturn as consumer spending shrinks, with a 6% contraction in dairy product sales reported in July 2025 compared to the previous year. Nonetheless, Argentina's commitment to sustainability aligns its agri-food production with global demands, positioning the nation as a responsible leader in global production. Small and medium enterprises face a surplus in milk, prompting calls for price adjustments to rebalance the market. The association of small and medium-sized dairy companies in Argentina, APYMEL, is advocating for a reduction in milk prices to address the imbalance.
The dairy industry in Argentina's Santa Fe province is at a crossroads. The Director of Dairy Production, Carlos De Lorenzi, has highlighted that the single way to maintain and increase the number of dairy farms is through robust external demand. The recent removal of export taxes has been pivotal in enhancing the prospects for the local dairy industry, opening broader market access, and consequently improving profitability for producers.
The Buenos Aires provincial government has extended the agricultural emergency in several districts for up to 180 days due to severe rains and floods that have disrupted the agricultural sector. This extension aims to provide relief to the producers in the hardest-hit areas.
A region in Córdoba has attracted the attention of an Asian country with high import potential for its dairy products. Chinese representatives visited the region of Villa María and inspected dairy plants, aiming to establish commercial ties for the import of high-quality dairy products. This initiative is viewed as excellent news for the sector, which is seeking to diversify its export markets beyond traditional destinations.
The Atilra labor union is set to request the bankruptcy of SanCor, further highlighting the challenges within the industry.
Modified: 2025/09/11